Soybean futures extend slide; corn climbs after USDA data

By Julie Ingwersen

CHICAGO, Dec 9 (Reuters) - U.S. soybean futures hit their lowest in more than a month on Tuesday, pressured by uncertainty about Chinese demand for U.S. supplies as well as expectations of large South American harvests, analysts said.

Corn futures rose after the U.S. Department of Agriculture cut its monthly forecast of U.S. corn inventories by more than most analysts expected. Wheat futures ended nearly unchanged.

Chicago Board of Trade January soybean futures SF26 settled down 6-1/2 cents at $10.87-1/4 per bushel after hitting $10.84-1/2, the contract's lowest since October 30. CBOT March wheat WH26 finished down 1/4 cent at $5.34-1/2 a bushel while March corn ended up 4-1/4 cents $4.48 a bushel.

Soybean futures hit session lows after the USDA left its forecasts unchanged in a monthly supply-demand report of 2025-26 U.S. soybean ending stocks and exports. Analysts surveyed by Reuters on average had expected a higher ending-stocks forecast given a sluggish pace of soy exports.

Brokers have been monitoring a pickup in purchases of U.S. soy by top buyer China following a trade truce between the two nations. The purchases, however, were well below levels that China has imported from the U.S. in recent years.

"It's a little surprising that they (USDA) didn't lower soy exports, but they might just be waiting for next month's report," said Ted Seifried, chief strategist at Zaner Group.

Pressure also stemmed from news that Argentina will lower export taxes on grains, soybeans and soy products in the coming days, sharpening competition for global export business.

South American crops continue to develop amid mostly favorable weather. The USDA left its forecast of soybean production in Brazil, the world's biggest supplier, unchanged at a record-high 175 million metric tons.

Corn futures extended their gains after the USDA pared its forecast of U.S. end-year corn inventories by more than most analysts expected, reflecting brisk export demand for the feedgrain.

Some analysts are looking ahead to the USDA's January reports, when the government typically adjusts its estimates of the most recent U.S. harvests.

"We could see some bullish corn numbers in January, if that export number holds and USDA lowers corn yields at all," said Craig Turner, a broker with commodity brokerage StoneX.

Reminders of ample world wheat supplies kept a lid on wheat futures. The USDA raised its wheat production forecasts for several major exporters including Canada, Argentina, Russia and Australia.